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Roth IRA & 401k tax strategy question

Posted on 3/4/14 at 2:09 pm
Posted by GeneralLee
Member since Aug 2004
13104 posts
Posted on 3/4/14 at 2:09 pm
I have a Roth IRA and then a taxable 401K. From a tax strategy perspective, would I be better off allocating assets with probable higher capital gains (i.e. small cap stocks) in my Roth IRA with tax-free distributions while allocating assets with lower probable capital gains (i.e. large cap stocks) in my 401K that will have taxable distributions?
Posted by Teddy Ruxpin
Member since Oct 2006
39611 posts
Posted on 3/4/14 at 2:13 pm to
I'm confused
Posted by LSUtigerME
Walker, LA
Member since Oct 2012
3809 posts
Posted on 3/4/14 at 2:19 pm to
Seems fairly straightforward to me.

Are you maxing pretax contributions? I could see questions arising regarding why you are contributing to a taxable 401k if you qualify for a Roth.
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